Solo Oil Plc Tanzania Operation Update (1598B)

TIDMSOLO

RNS Number : 1598B

Solo Oil Plc

08 January 2018

FOR IMMEDIATE RELEASE

8 January 2018

SOLO OIL PLC

("Solo" or the "Company")

Tanzania Operations Update

Solo Oil plc is pleased to announce the following updates concerning its oil and gas operations in Tanzania.

Ntorya-3 Well

Aminex plc ("Aminex"), the operator of the Ruvuma Petroleum Sharing Contract ("Ruvuma PSC"), has announced that the partnership are progressing towards drilling the second appraisal well, Ntorya-3 ("NT-3"), on the Ntorya gas field discovery as soon as practically possible. Aminex is actively engaged with the Tanzanian authorities and third party engineering firms on advanced well planning and drilling management plans. Tendering is in progress for a rig which will also be suitable for exploration and development drilling in the Ntorya gas field and potentially the Company's other assets in Tanzania. Anticipated spud date for NT-3 will be announced once a rig has been secured.

Kiliwani North

At the producing Kiliwani North gas field, where Aminex is also the operator, Solo is pleased to advise that the Kiliwani North-1 well produced an aggregate 95 million cubic feet ("mmscf") of gas during the month of December, without intervention, due to natural pressure recharge allowing the well to flow at rates up to approximately 9 mmscfd. Total gross production from the well in 2017 was 3.6 billion cubic feet ("bcf"). In order to maximise recovery from Kiliwani North-1 Aminex and the Tanzania Petroleum Development Corporation are cooperating on the installation of compression facilities.

Aminex has advised that they are currently reprocessing existing seismic data over the Kiliwani North block and the adjoining Nyuni Area acreage close to the Songo Songo Island gas processing plant with the aim of identifying potential new drilling targets which could be brought on stream relatively quickly and would supplement gas production from the existing Kiliwani North-1 well.

CPR and Ntorya Development Licence

Work continues on the independent evaluation report of Solo and Aminex's Tanzanian resources and this remains on track to be completed in early 2018. Solo holds a 25% interest in the Ruvuma PSC and a 7.55% interest in the Kiliwani North Development Licence, both of which will be covered by the planned Competent Persons Report ("CPR"). The new report will update and supersede all previous reports on the Solo's oil and gas concessions in Tanzania, and will be based on newly acquired well data and the ongoing reinterpretation of all technical data.

The Company also notes that positive discussions are ongoing with the Tanzanian authorities to progress the outstanding Ntorya Development Licence application and shareholders will be updated on significant milestones when acheived.

Neil Ritson, Solo's Executive Chairman, commented:

"We are happy to see that planning for further development at Ntorya is progressing and that suitable drilling equipment is being sought for the drilling of the Ntorya-3 well. Production at Kiliwani North has continued, and will be enhanced with compression in due course, which is an encouraging development. The new CPR is a key step in realising value at Ntorya and we look forward to its conclusion, which we understand remains reasonably on track and is expected to be completed in the next month."

Qualified Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chairman and Director for Solo Oil plc, who has over 40 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers (SPE), an Active Member of the American Association of Petroleum Geologists (AAPG) and is a Fellow of the Geological Society of London (BGS).

For further information:

 
 Solo Oil plc 
  Neil Ritson / Dan Maling     [phone] 
 
 Beaumont Cornish Limited 
  Nominated Adviser and 
  Joint Broker 
  Roland Cornish / Rosalind 
  Abrahams                     [phone] 
  Shore Capital 
   Joint Broker 
   Jerry Keen 
   Beaufort Securities 
   Joint Broker 
   Jon Belliss 
   Buchanan (PR)                [phone] 
   Ben Romney / Chris            [phone] 
   Judd / Henry Wilson           [phone] 
 

Notes to Editors:

Solo Oil plc (Solo), is a natural resources investment company with a diverse portfolio of onshore assets, principally in Europe and Africa. The company seeks to deliver returns through early stage investment in promising projects and uses management's own sector expertise to assist in strategic asset development. Solo's portfolio currently includes extensive interests in the prolific Ruvuma Basin in Tanzania, the Horse Hill oil discovery in the Weald Basin, Helium One Limited, the Tanzanian helium exploration company, and Kiliwani North, a natural gas producing project in Tanzania.

Glossary :

 
 bcf      billion cubic feet 
-------  -------------------------------- 
 CPR      Competent Persons Report 
-------  -------------------------------- 
 mmscf    million standard cubic feet 
-------  -------------------------------- 
 mmscfd   million standard cubic feet per 
           day 
-------  -------------------------------- 
 PSA      petroleum sharing agreement 
-------  -------------------------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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January 08, 2018 02:00 ET (07:00 GMT)